Market Overview

Over the past week the market has struggled to find traction, it feels like there could still be more downside. Early in the morning the CBOE put/call ratio was the highest I’ve ever seen at 1.94. It slowly moved downward through the day, but it remains quite elevated. What is the root cause of all the fear in the market? Volatility spiked a small amount in the middle in the day but overall the market is basically just flat.

General Notes

Types of Hedge Funds

CTA/Managed Futures

Equity Hedge

Event Driven

Fixed Income Directional

Fixed Income Relative Value

Macro

Multi-strategy

Trading Log

11:00 AM

I’m trying to become more aware of timing and trade selection. Recently I realized I’ve been overtrading for the past year, this causes me to make some gains on my good trades, but those gains are quickly offset by ill-advised or poorly timed trades. My view is that the current market environment is good for experienced active traders. My problem is I’m not experienced enough in these types of market environments to have a firm grasp of what’s really going on in this world.

I shouldn’t feel pressure to swing at every single pitch. In fact, I shouldn’t feel pressure to ever swing at a pitch because there are not strikeouts unless I swing the bat. I can wait a thousand pitches if I want.

3:30 PM

After meeting with a valued advisor today I left our discussion with a renewed sense of the importance of understanding and developing my own style. The world is in a constant state of disruption, yet there are still things, people, asset classes, and equities that endure and remain constant. It’s not enough to find one person to emulate. It’s important that I take in everything I can from the world around me. This includes a varied set of viewpoints and ideas. Will continue grinding.